2013 (12) TMI 348 - SC - Companies Law

Supreme Court resolves winding up dispute with amicable settlement, parties withdraw petition, expedited civil suit

The Supreme Court noted the amicable resolution of the dispute between the parties during the appeal hearing regarding a winding up petition due to ... Winding up Petition – Inability to pay dues – Held that:- The parties have amicably resolved their dispute - It has been agreed among the parties that out of the amount of Rs. 13 lakhs deposited with the Calcutta High Court, the respondent is permitted to withdraw Rs. 10 lakhs and the remaining amount of Rs. 3 lakhs shall be returned to the appellant - The winding up proceedings shall be dropped or permitted to be withdrawn and the hearing of Civil Suit filed by the appellant along with its sister concern against the respondent and others, before the Calcutta High Court shall be expedited. Issues:- Dispute resolution between parties in a winding up petition.- Admittance of winding up petition due to non-payment of dues.- Appeal against rejection of A.P.O. No. 120 of 2013.- Direction to deposit Rs. 13 lakhs with the Calcutta High Court.- Agreement between parties on withdrawal of deposited amount.- Expedited hearing of civil suit filed by the appellant.Dispute Resolution:The Supreme Court noted that the parties involved in the litigation had amicably resolved their dispute during the appeal hearing. Consequently, the appeal was disposed of with specific directions. The respondent had filed a winding up petition against the appellant for non-payment of dues amounting to Rs. 13 lakhs, of which Rs. 2 lakhs had already been paid. The appellant claimed that a certain amount was due from the sister concern of the respondent, leading to the refusal of payment.Admittance of Winding Up Petition:After hearing the counsel of both parties, the winding up petition was admitted, and an order for publication of advertisement was issued. Subsequently, the appellant filed an appeal against the rejection of A.P.O. No. 120 of 2013 by the Division Bench of the Calcutta High Court. The Supreme Court directed the appellant to deposit Rs. 13 lakhs with the Calcutta High Court, which was complied with.Direction on Deposit and Withdrawal:The parties agreed that out of the deposited Rs. 13 lakhs, the respondent could withdraw Rs. 10 lakhs, while the remaining Rs. 3 lakhs would be returned to the appellant. As a result, the winding up proceedings were to be dropped or withdrawn, and the hearing of a civil suit filed by the appellant and its sister concern against the respondent and others was to be expedited.Expedited Hearing of Civil Suit:Both parties' counsels assured the Supreme Court of their cooperation to expedite the hearing of the civil suit in the Calcutta High Court. Consequently, the orders dated 19th April, 2013, and 22nd January, 2013, related to the appeal and winding up petition were quashed and set aside. The appeal was disposed of without any order as to costs.